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Old Posted Sep 20, 2019, 9:30 PM
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TakeFive TakeFive is offline
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This is for CherryCreek's weekend reading assignment

Fed's Rosengren flags risks to economy in WeWork-style model
SEPTEMBER 20, 2019 by Ann Saphir/Reuters

I'm not sure the specific risk goes beyond WeWork. OK, I get it but not sure how much concern there should be.

Every lease that WeWorks executes is a separate legal entity which could in times of rising vacancy just declare bankruptcy. The key question here though for Denver specifically, is the office market over-supplied with space? It would take a significant economic downturn to create a big problem. WeWork hardly adds to the risk, it's just a different wrinkle for the market. I see only moderate risk to Denver even with a recession.
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